BNP Paribas's Deal Illustrates
Lack of Cross-Border Openings

By

Jo Wrighton and

Marcus Walker Staff Reporters of The Wall Street Journal

Updated Nov. 29, 2002 12:01 a.m. ET

French bank BNP Paribas SA's surprise purchase of a stake in rival Credit Lyonnais SA sets the stage for a takeover battle for the former state-owned bank. But it also reflects many bankers' frustration at the lack of cross-border merger opportunities and their conclusion that for now, domestic deals still look more attractive.

BNP Paribas, the largest bank in the euro zone by market capitalization, had long been considered the most likely of the European banks to be involved in a cross-border merger. But it retargeted its...